1.

A merchant purchases a wrist watch for Rs. 450 and fixes its list price in such a way that after allowing a discount of 10%, he earns a profit of 20%. Then the list price of the watch is ________.1). Rs. 6502). Rs. 7003). Rs. 5504). Rs. 600

Answer»

LET the LIST price of a watch be Rs. m.

Cost price of a watch = Rs. 450

Discount percentage = 10%

Selling price of a watch = m – m × 10/100 = 9m/10

Profit percentage = 20%

Profit percentage = [(S.P – C.P)/C.P] × 100

⇒ 20 = [(9m/10 – 450)/450] × 100

90 = 9m/10 – 450

⇒ 9m/10 = 540

⇒ m = 600

∴ List price of a watch is Rs. 600.


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